City to get lean manufacturing clusters to enhance efficiency

Ludhiana: In an initiative to enhance efficiency and reduce waste in the manufacturing sector, the ministry of micro, small, and medium enterprises (MSME) has introduced the formation of lean manufacturing clusters.
This initiative aims to help units adopt lean manufacturing practices, ultimately minimizing production costs, improving product quality, and boosting overall competitiveness.
The ministry of micro, small, and medium enterprises (MSME) has introduced the MSME Competitive (Lean) Scheme to enhance the competitiveness of MSMEs by implementing lean manufacturing techniques. These techniques aim to reduce waste, improve productivity, and foster a culture of continuous improvement within the sector.
The scheme is implemented through the formation of mini clusters, each comprising approximately 10 MSME units. These clusters receive guidance from lean manufacturing consultants (LMCs) to adopt various lean tools and techniques. The government provides financial support covering up to 90% of the implementation cost for micro, small, and medium enterprises.
Lean manufacturing is a systematic approach to identifying and eliminating waste within production processes. The focus is on optimizing every aspect—from material flow to production steps—to ensure that resources like time, material, and labour are used efficiently.
By streamlining operations, the manufacturers can reduce wastage, minimize rejection and rework, and shorten production cycles.
For instance, if a process takes 10 steps, lean techniques aim to reduce those steps without compromising quality.
The National Productivity Council (NPC) has been appointed as the nodal agency for overseeing the implementation of this scheme. The project is being executed in phases, with financial support from the government.
Under the revised scheme, the government covers 90% of the implementation cost, while the participating units contribute the remaining 10%.
Highlighting the importance of this initiative, Gurpreet Singh Kahlon, vice-president of Auto Parts Manufacturers Association (APMA), said by adopting lean manufacturing, companies could significantly reduce material wastage, streamline production processes, and enhance productivity.
Under this model, several manufacturing units working in similar sectors, such as auto parts or tractor components, come together to form a cluster.
Though this scheme has been existing earlier as well, it has now been revised. In the revised scheme, the clusters would be formed based on geographic proximity, rather than only sectors.
Also, consultation grant would be given in two phases and the second phase grant would only be given if the first phase is successfully implemented. Each cluster would function as a collective, where 4-10 manufacturing units would collaborate to adopt lean methodologies. Among these units, one representative would be selected as the cluster head, responsible for ensuring the implementation of lean practices and monitoring progress.